Debt ceilings are designed to
A)Reduce the deficit.
B)Balance the federal budget.
C)Specifically reduce the debt held by banks.
D)Do nothing since the Supreme Court held them unconstitutional in 1985.

Question

Quizplus · Accepted Answer

Debt ceilings are designed to limit the amount of debt the government can take on, which can help to reduce the deficit. It does not necessarily balance the federal budget, as spending cuts or revenue increases may also be necessary to achieve a balanced budget. Debt ceilings also do not specifically reduce the debt held by banks. The Supreme Court has not held debt ceilings unconstitutional.

Debt Ceilings Are Designed to